Major payers who announced second-quarter earnings shared profits that exceeded expectations, lower medical costs and a raised outlook for the year.
Their bottom lines were helped in part by a still-weak economy in which many consumers have put off provider visits and hospitals have fewer admissions, resulting in fewer claims.
Payers also are preparing for the start of plan enrollment through health insurance exchanges in many states in October under the Affordable Care Act.
Cigna Corp., based in Bloomfield, Conn., reported on Thursday net income of $505 million, or $1.76 a share, compared with $380 million, or $1.31 a share in the same quarter in 2012. Income from operations, excluding losses from its pharmacy benefits arrangement, was $1.78 a share.
Revenue increased to $7.98 billion from last year's $7.42 billion. Cigna saw growth in premiums and fees of 5 percent in its health care, 35 percent in supplemental benefits and 10 percent in its disability and life businesses.
David Cordani, president and CEO, said in a statement that Cigna is "creating value…in each of our business segments through sustained investments in capabilities and innovation."
The insurer increased the full year 2013 outlook to be in the range of $6.25 to $6.65 per share.
Humana, of Louisville, Ky., reported on Wednesday net income of $420 million, or $2.63 a share, 18 percent higher than the $356 million, or $2.16 a share, in the year-ago second quarter.
Revenue increased to $10.3 billion from $9.7 billion last year, with a high concentration of its revenue from its Medicare Advantage business, the company said.
The insurer raised its full-year outlook to $8.65 to $8.75 a share from a previous forecast of $8.40 to $8.60 a share.
For Aetna, based in Hartford, Conn., second-quarter net income was $536 million, or $1.49 a share, 17 percent more than $457.6 million, or $1.32, in the same period last year, helped by its purchase of Coventry Health Care last year. Revenue was $11.5 billion compared with $8.8 billion last year.
Full-year net income is anticipated to be $5.80 to $5.90 a share from the previous outlook of $5.70 to $5.85, said Mark Bertolini, Aetna chairman, CEO and president. "The second quarter marked a significant milestone with the completion our Coventry Health Care acquisition," he said in a statement Tuesday.
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